Blockchain-as-a-Service (BaaS): Everything You Need To Know
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Blockchain-as-a-service (BaaS) refers to creating and managing cloud-based networks for companies building and operating blockchain apps. Think of it as simply outsourcing complex tasks to focus on your core business. Third-party providers give you the blockchain infrastructure you need to build your product/service.
Blockchain has made a name for itself for being the technology behind cryptocurrency transactions. The more the technology matures, the wider the net of its applications becomes. According to the Fortune Business Insights report, the Global BaaS market size is projected at USD 24.94 Billion by 2027.
As a result, the demand for blockchain hosting services has increased incrementally. The closest example we have today is web hosting. Companies like Hostinger, GoDaddy and Hostgator are comparative cloud-based examples of the version of the Internet we use today. BaaS might still be in its formative years. Still, it’s considered to be a catalyst in helping the widespread adoption of blockchain technology.
How does BaaS work?
Think of Blockchain-as-a-Service as the infrastructure, the foundation upon which you’d build, host, and operate your own blockchain app. The cloud-based service provider is responsible for keeping the infrastructure free of threats and scams and ensuring it’s agile and fast enough to allow users to build without any obstructions. Moreover, the infrastructure operator is responsible for regulating bandwidth, capacity, and storage.
This is a model we’ve seen utilised before, with companies using cloud technology to access services much more efficiently. You essentially pay the provider for setting up and maintaining the nodes, handling all the back-end work while you focus on building a product/service. Why is BaaS so essential and valuable to companies? Here’s why.
Blockchain-as-a-Service business benefits
Blockchain technology carries inherent technical complexities, such as a lack of domain expertise, monetary cost, and time and resources invested in building, developing, operating, and maintaining. The amalgamation of these factors slows down adoption by the business sector, and this is where BaaS can come in and help drastically. Here are the main business benefits when adopting BaaS:
- immediate, shared, and transparent information
- safely stored on an immutable ledger
- it can only be accessed by permissioned network members
- blockchain networks provide all the details of a transaction in one place, e.g. track orders, payments, accounts, and more
- eliminate startup and overhead costs
How to choose your Blockchain-as-a-Service (BaaS) provider
Whether it’s Amazon, ChainStack or SAP, choosing a provider must be a careful process. Considering this is a new technology and that builders and businesses do not possess the necessary experience, there are a couple of things to consider.
Smart contracts integration
Integrating your business logic into the blockchain solution is quite a technical process. Testing, deployment and all the dev-related activities that we’re used to with web2 development are entirely different when working with a blockchain platform. With that said, it’s paramount that the provider of your choice gives you the smart contract integration tools to make your life easier.
Dev communities can make or break a platform, provider or technology. Forums and comments are where developers find solutions, share their own knowledge and where the overall consensus around a solution is actually formed.
Choosing a platform with a string community opens you up to a more seamless experience. You can engage with other developers and other project creators and learn things about blockchain that you have never learned otherwise.
IAM (Identity Access Management)
An IAM system seals your network and only allows users to access specific information with your approval. It’s an extra security layer that emanates a sense of proper safety for your infrastructure.
Identity access management allows managers and business owners to create access at different levels within the company, segregating information and accessibility.
Blockchain-as-a-Service (BaaS) is the ice-breaker the sector is looking to help enterprises ease into the blockchain future with scalable solutions.
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